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Sparks

American Fuel Economy Just Hit a Record, Thanks to EVs and Hybrids

The EPA’s numbers show the biggest improvements in almost a decade, despite America’s thirst for ever-larger trucks and SUVs.

Electric cars.
Heatmap Illustration/Getty Images

The U.S. Environmental Protection Agency is out with its annual Automotive Trends Report for 2022 model-year vehicles, and the numbers are some of the best it’s seen. Average emissions are at a record low and fuel economy is at a record high — and according to preliminary 2023-model-year data, those trends will continue into the new year.

Overall, the EPA says average real-world CO2 emissions for new vehicles sold in 2022 dropped by 10 grams of carbon dioxide per mile for an average of 337 g/mile, the lowest the agency has recorded. On the other side, fuel economy averages are at 26 miles per gallon, an improvement of 0.6 MPG and another record high for new vehicles sold.

Of the five categories of vehicles tested, four are the most fuel efficient the agency has seen since its inception, with crossovers (what the EPA classifies as “car SUVs”) showing the biggest drop in emissions at 27 g/mile, followed by pickup trucks, sedans/wagons, minivans, and SUVs.

The not-so-good-news is the EPA also recorded its highest number of SUVs, pickups, and minivans/vans sold since 1975, accounting for a whopping 63% of new vehicles that rolled off dealer lots. And across the board, 2022 vehicles were also the heaviest and largest ever sold.

This is primarily due to two things: First, automaker safety is at an all-time high, swelling cars with better crumple zones, dozens of airbags, and scads of active safety systems. Second, Americans just like big vehicles with more power — what the EPA calls “market trends.” That likely won’t change with 2023’s numbers.

Thankfully, there will be more EVs and hybrids coming to market, which should help to offset some of the emissions. Electrics helped reduce average emissions by 22 g/mile in 2022 and increased overall fuel economy by 1.2%, and projections for the next report show an even bigger boost to 26.9 MPG in 2023.

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Sparks

It’s Been a Big 24 Hours for AI Energy Announcements

We’re powering data centers every which way these days.

Google and Exxon logos.
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The energy giant ExxonMobil is planning a huge investment in natural gas-fired power plants that will power data centers directly, a.k.a. behind the meter, meaning they won’t have to connect to the electric grid. That will allow the fossil fuel giant to avoid making the expensive transmission upgrades that tend to slow down the buildout of new electricity generation. And it’ll add carbon capture to boot.

The company said in a corporate update that it plans to build facilities that “would use natural gas to generate a significant amount of high-reliability electricity for a data center,” then use carbon capture to “remove more than 90% of the associated CO2 emissions, then transport the captured CO2 to safe, permanent storage deep underground.” Going behind the meter means that this generation “can be installed at a pace that other alternatives, including U.S. nuclear power, cannot match,” the company said.

The move represents a first for Exxon, which is famous for its far-flung operations to extract and process oil and natural gas but has not historically been in the business of supplying electricity to customers. The company is looking to generate 1.5 gigawatts of power, about 50% more than a large nuclear reactor, The New York Timesreported.

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Trump Promises ‘Fully Expedited’ Permitting in Exchange for $1 Billion of Investment

But ... how?

Donald Trump.
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President-elect Donald Trump on Tuesday rocked the energy world when he promised “fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals” for “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America,” in a post on Truth Social Tuesday.

“GET READY TO ROCK!!!” he added.

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The Mad Dash to Lock Down Biden’s Final Climate Dollars

Companies are racing to finish the paperwork on their Department of Energy loans.

A clock and money.
Heatmap Illustration/Getty Images

Of the over $13 billion in loans and loan guarantees that the Energy Department’s Loan Programs Office has made under Biden, nearly a third of that funding has been doled out in the month since the presidential election. And of the $41 billion in conditional commitments — agreements to provide a loan once the borrower satisfies certain preconditions — that proportion rises to nearly half. That includes some of the largest funding announcements in the office’s history: more than $7.5 billion to StarPlus Energy for battery manufacturing, $4.9 billion to Grain Belt Express for a transmission project, and nearly $6.6 billion to the electric vehicle company Rivian to support its new manufacturing facility in Georgia.

The acceleration represents a clear push by the outgoing Biden administration to get money out the door before President-elect Donald Trump, who has threatened to hollow out much of the Department of Energy, takes office. Still, there’s a good chance these recent conditional commitments won’t become final before the new administration takes office, as that process involves checking a series of nontrivial boxes that include performing due diligence, addressing or mitigating various project risks, and negotiating financing terms. And if the deals aren’t finalized before Trump takes office, they’re at risk of being paused or cancelled altogether, something the DOE considers unwise, to put it lightly.

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